Search and menus

Search

Topics menu

You are here:

ARCHIVED -
Telecom Decision CRTC 2007-85

This page has been archived on the Web

Information identified as archived on the Web is for reference, research or recordkeeping purposes. Archived Decisions, Notices and Orders (DNOs) remain in effect except to the extent they are amended or reversed by the Commission, a court, or the government. The text of archived information has not been altered or updated after the date of archiving. Changes to DNOs are published as “dashes” to the original DNO number. Web pages that are archived on the Web are not subject to the Government of Canada Web Standards. As per the Communications Policy of the Government of Canada, you can request alternate formats by contacting us.

Telecom Decision CRTC 2007-85

Bell Canada - Applications for forbearance from the regulation of residential local exchange services

In this Decision, the Commission approves Bell Canada's request for forbearance from the regulation of residential local exchange services in 2 exchanges in Ontario. The Commission denies Bell Canada's request for forbearance in 56 exchanges.

Introduction

1.

The Commission received applications by Bell Canada, dated 11 April and 1 May 2007, in which the company requested forbearance from the regulation of residential local exchange services1 in 249 exchanges in Ontario and Quebec.

2.

In Telecom Decision 2007-65, the Commission dealt with the applications for forbearance for 191 of the 249 exchanges. In this Decision, the Commission addresses the applications for forbearance for the remaining 58 exchanges, which are listed in Appendix 1.

3.

In a letter dated 7 May 2007, the Commission directed incumbent local exchange carriers, competitive local exchange carriers (CLECs), and wireless service providers to provide additional information regarding local forbearance applications before it.

The Commission has assessed Bell Canada's applications based on the local forbearance test set out in Telecom Decision 2006-15, as amended by the Governor in Council's Order Varying Telecom Decision CRTC 2006-15, P.C. 2007-532, 4 April 2007 (modified Telecom Decision 2006-15), by examining the following:

a) Product market

b) Competitor presence test

c) Competitor quality of service (Q of S) results

d) Communications plan

6.

The Commission notes that it has already addressed an additional issue raised by Bell Canada in its applications, namely limitation of liability provisions, in Telecom Decision 2007-65.

Commission's analysis and determinations

a) Product market

7.

The Commission received no comments with respect to Bell Canada's proposed list of residential local exchange services.

8.

The Commission notes that Bell Canada is seeking forbearance for 20 tariffed residential local exchange services. The Commission also notes that in Telecom Decision 2007-65, it considered all of these services to be appropriate for forbearance. The list of approved services is set out in Appendix 2 to this Decision.

b) Competitor presence test

9.

As noted above, in this Decision the Commission addresses Bell Canada's applications for forbearance from the regulation of residential local exchange services in 58 exchanges.

10.

The Commission notes that information provided by parties indicates that there is no facilities-based fixed-line telecommunications service provider, other than Bell Canada, offering residential services in the Luskville, Brownsburg, Cowansville, Dunham, Granby, Papineauville, St-Germain-de-Grantham, St-Paul-d'Abbottsford, Thurso, Waterloo (Quebec), or Wickham exchanges. Accordingly, the Commission determines that these 11 exchanges do not meet the competitor presence test.

11.

The Commission also notes that for the 32 exchanges listed in Appendix 3, information provided by Bell Canada and confirmed by competitors indicates that none of the competitors is capable of serving at least 75 percent of the number of residential local exchange service lines that Bell Canada is capable of serving in each of these exchanges. Accordingly, the Commission determines that these 32 exchanges do not meet the competitor presence test.

12.

Regarding the remaining 15 exchanges, the Commission notes that Bell Canada submitted that competitors were capable of serving at least 75 percent of the number of residential local exchange service lines that Bell Canada was capable of serving in these exchanges.

13.

The Commission also notes that Bell Canada submitted service area maps as part of its evidence. However, some competitors submitted that service area maps did not indicate whether a CLEC provided local exchange services using its own facilities.

14.

The Commission considers that while service area maps provide evidence that competitors offer services, they do not demonstrate whether the competitors provide facilities-based local exchange service. As a result, for the exchanges where Bell Canada provided service maps as evidence, the Commission requested that the competitors provide additional information regarding their facilities-based capability within an exchange.

15.

The Commission notes that for 2 of these 15 exchanges, namely, Bethesda and Hamilton, information provided by parties confirms that there are, in addition to Bell Canada, at least two independent facilities-based telecommunications service providers, including providers of mobile wireless services. Each of these service providers offers local exchange services in the market and is capable of serving at least 75 percent of the number of residential local exchange service lines that Bell Canada is capable of serving, and at least one, in addition to Bell Canada, is a facilities-based, fixed-line telecommunications service provider. Accordingly, the Commission determines that these 2 exchanges meet the competitor presence test.

16.

The Commission determines that the remaining 13 exchanges do not meet the competitor presence test, as the other fixed-line telecommunications service providers are not capable of serving at least 75 percent of the number of residential local exchange service lines that Bell Canada is capable of serving.

c) Competitor Q of S results

17.

The Commission notes that Bell Canada submitted competitor Q of S results for the period of December 2006 to May 2007. The Commission also notes that in Telecom Decision 2007-65, it determined that Bell Canada's competitor Q of S results for this period met the competitor Q of S criterion.

d) Communications plan

18.

The Commission notes that it approved Bell Canada's proposed communications plan, with revisions, in Telecom Decision 2007-65. In accordance with its determinations in that Decision, the Commission directs Bell Canada to provide these revised communications materials to its customers in both official languages, where appropriate.

Conclusion

19.

The Commission determines that Bell Canada's applications regarding the Bethesda and Hamilton exchanges meet all the local forbearance criteria set out in modified Telecom Decision 2006-15.

20.

Pursuant to subsection 34(1) of the Telecommunications Act (the Act), the Commission finds as a question of fact that a determination to forbear, to the extent specified in modified Telecom Decision 2006-15, from the regulation of the residential local exchange services listed in Appendix 2 and future services that fall within the definition of local exchange services set out in Telecom Public Notice 2005-2 as they pertain to residential customers only, in the Bethesda and Hamilton exchanges, would be consistent with the Canadian telecommunications policy objectives set out in section 7 of the Act.

21.

Pursuant to subsection 34(2) of the Act, the Commission finds as a question of fact that these residential local exchange services are subject to a level of competition in these exchanges sufficient to protect the interests of users of these services.

22.

Pursuant to subsection 34(3) of the Act, the Commission finds as a question of fact that to forbear, to the extent specified in modified Telecom Decision 2006-15, from regulating these residential local exchange services in these exchanges would be unlikely to impair unduly the continuance of a competitive market for these services.

23.

In light of the above, the Commission approves Bell Canada's applications for forbearance from the regulation of the local exchange services set out in Appendix 2 and future services that fall within the definition of local exchange services set out in Telecom Public Notice 2005-2, as they pertain to residential customers only, in the Bethesda and Hamilton exchanges, subject to the powers and duties that the Commission has retained as set out in modified Telecom Decision 2006-15. This determination takes effect as of the date of this Decision. The Commission directs Bell Canada to file for Commission approval revised tariff pages within 30 days.

24.

The Commission determines that Bell Canada's applications regarding the remaining 56 exchanges do not meet all the local forbearance criteria set out in modified Telecom Decision 2006-15. Accordingly, the Commission denies Bell Canada's application for forbearance from the regulation of the residential local exchange services in those 56 exchanges.

Secretary General

Related documents

Forbearance from the regulation of retail local exchange services, Telecom Decision CRTC 2006-15, 6 April 2006, as amended by the Governor in Council's Order Varying Telecom Decision CRTC 2006-15, P.C. 2007-532, 4 April 2007

List of services within the scope of the proceeding on forbearance from the regulation of local exchange services, Telecom Decision CRTC 2005-35, 15 June 2005, as amended by Telecom Decision CRTC 2005-35-1, 14 July 2005

Forbearance from regulation of local exchange services, Telecom Public Notice CRTC 2005-2, 28 April 2005

This document is available in alternative format upon request, and may also be examined in PDF format or in HTML at the following Internet site: www.crtc.gc.ca

_______________

Footnote:

1In this Decision, "residential local exchange services" refers to local exchange services used by residential customers to access the public switched telephone network, and any associated service charges, features, and ancillary services.

Appendix 1

Bell Canada requested forbearance from the regulation of its residential local exchange services in the following 58 exchanges:

Exchanges within the priority census metropolitan areas (CMAs)

Hamilton CMA

Binbrook

Hamilton

Mount Hope

Montréal CMA

Hudson

Mirabel-Aéroport

Mirabel-Ste-Scholastique

Oka

Ottawa-Gatineau CMA

Aylmer

Buckingham

Chelsea

Embrun

Luskville

Perkins

Québec CMA

Notre-Dame-des-Laurentides

St-Jean-Île-d'Orléans

Valcartier

Toronto CMA

Bethesda

Claremont

Oak Ridges

Exchanges outside of the priority CMAs

Actonvale

Almonte

Bromont

Bromptonville

Brownsburg

Cayuga

Coaticook

Cowansville

Crabtree

Dunham

Dunnville

Farnham

Gananoque

Granby

Hagersville

Joliette

Kingsville

Lachute

Leamington

Lindsay

Montebello

Papineauville

Pelham

Ridgeway

Rigaud

Rockwood

St-Calixte-de-Kilkenny

St-Denis

Ste-Julienne

St-Germain-de-Grantham

St-Jacques

Stoke

St-Paul-d'Abbottsford

St-Polycarpe

St-Rémi

St-Tite-des-Caps

Thurso

Waterloo (Quebec)

Wickham

Appendix 2

Local exchange services eligible for forbearance from regulation in this Decision (for residential customers only)

Tariff

Item

List of services

6716

29

Telephone Set Loss Charge

6716

70

Rate Schedules for Primary Exchange (Local) Service

6716

72

Reference of Calls

6716

73

Telephone Number Services

6716

82

Toll Restriction

6716

86

Call Display Blocking

6716

220

Extra Listings - Omission of a Primary Exchange Listing

6716

1060

Service on Stationary Boats, Ships, Trailers and Trains

6716

1130

Suspension of Service

6716

2025

Integrated Voice Messaging Service (IVMS)

6716

2030

Universal Messaging

6716

2150

Push-Button Dialing (Touch-Tone)

6716

2165

Calling Features

6716

2180

PrimeLine Executive

6716

2185

Single Number Reach

6716

2200

Call Blocking Service

6716

2210

SimplyOne Service

6716

2300

Telephone Station Equipment

6716

4699

Internet Call Display Service

6716

7031

Bell Digital Voice

Appendix 3

List of exchanges where Bell Canada estimated competitor capability at less than 75 percent